Pi Coin explains: Mining mechanics, technical fundamentals, and investment perspective

The Pi Network divides the crypto community: Enthusiasts see it as a revolutionary project, skeptics warn of unrealistic expectations. With the launch of the open mainnet in February 2025, the debate has entered a new phase. For the first time, users can trade Pi Coins on exchanges – but what does that really mean? The current market price of $0.20 tells a different story than the initial euphoria.

What is behind the Pi Network?

The Pi Network is based on a core idea that aims to radically simplify crypto mining: anyone can participate via their smartphone. But this simplification is also the biggest source of misunderstandings. To understand what Pi truly is, three key questions must be answered.

Is it real crypto mining on a smartphone?

Clear answer: No. The Pi Network fundamentally differs from traditional proof-of-work mining like Bitcoin. Instead, the project uses the Stellar Consensus Protocol (SCP) – a different security model where users contribute to the network not through computational power, but through building trust.

Classic mining involves creating new coins through intensive calculations on specialized hardware. Pi does not follow this approach. The “mining” in the Pi Network is actually a clever engagement model that rewards participation and network building – not computational capacity.

How does the Pi “mining” work in practice?

The system is based on three elements:

Proof of Presence: Users open the app daily and tap a button – the so-called “Proof of Presence”. No complex algorithms, no technical requirements. It’s just about being present and signaling activity.

Trust Network: Participants build so-called Security Circles by adding trusted contacts. These networks form a global trust graph used for transaction validation. The more reliable the network of contacts, the higher the security.

Community Growth: Ambassador (Botschafter) receive bonuses of 25% when they invite new active users. This referral system creates incentives for organic growth – without central promotion.

The term “mining” is thus a metaphor. It’s not about calculation, but about confirmation: confirmation of activity, authenticity, and trustworthiness.

Why the nomenclature?

The term “Mining” psychologically links the Pi Network to the world of cryptocurrencies – a deliberate decision by the project team. In reality, it’s more a participation mechanic. Traditional mining secures a decentralized network through energy use and hardware. Pi’s approach secures the network through authentication and social connections, without significant energy costs. This makes it accessible but also raises questions about true decentralization.

How is the Pi price developing? A technical overview

The chart of the Pi Network shows volatility, disappointment, and ongoing uncertainty. After years of development, the mainnet launched on February 20, 2025 – triggering a temporary price increase. But the euphoria quickly faded.

The price development in detail

In May 2025, Pi reached a local high near $3, which many saw as a breakthrough signal. But what followed was a continuous sell-off. The price fell below the $1 mark, dropped to about $0.86 in March – and since then, Pi has been moving sideways in the cent range. With the current price of $0.20, Pi is now 87.95% below the December 2022 level.

This dramatic decline reveals the reality: The IOU market (Promises of future coins) is highly speculative. There is no fundamental valuation basis – only hope and speculation.

Technical indicators suggest selling pressure

The Relative Strength Index (RSI) is currently in the oversold zone, which could allow for short-term technical rebounds. However, the MACD remains clearly negative – no momentum, no buy signal. Trading volume is declining, indicating a lack of market participant interest.

In short: The technical picture does not support an immediate recovery. A rise would have to be fought against the trend – and without new fundamental catalysts, that’s unlikely.

Should you buy Pi Coin now?

The honest answer: not at the moment. Here’s why:

The chart shows an intact downtrend without clear bottom formation. The support at $0.60 has been broken, further declines to $0.40 or below are possible. The risk currently outweighs the potential reward.

For newcomers, reliable entry signals are missing. The network is not yet widely listed on major exchanges – liquidity remains limited. Without real exchange listings (like on Gate.io or similar platforms with broad acceptance), prices stay artificially depressed.

But: for those who mined Pi for free over years, every positive price is technically a gain. For them, an investment could be interesting in the long run despite risks – provided the project survives the consolidation phase.

Pi Coin price targets for 2025–2030

Based on current market dynamics, two realistic scenarios emerge:

Conservative scenario: Pi consolidates, recovers slowly. By 2030, prices could range between $0.40 and $1.40. That would represent a return of about 154% – a moderate development for a young market.

Optimistic scenario: The mainnet runs smoothly, major exchanges list Pi, user demand increases. In this case, prices could rise up to $5.00 by 2030 – a cumulative return of 809%.

The reality is probably somewhere in between. Key factors are whether the project overcomes two hurdles:

1. Technical stability: The open mainnet must function smoothly and not be overwhelmed by sell-offs.
2. Liquidity: Pi needs listings on established platforms to avoid being stuck in dubious IOU markets.

Currently, both factors are questionable. The maximum supply of 100 billion coins is another issue: as these are gradually released, selling pressure will increase enormously. A stable price of $1 or higher is then hardly possible – unless demand grows exponentially.

Can Pi really $1 reach?

Theoretically yes. With the current 8.37 billion coins in circulation, $1 a market capitalization of about $8.4 billion$1 is possible. But realistic? Only if new, substantial catalysts appear: exchange listings, partnerships, real use cases.

Without these, $314 it remains a hope, not a likely development.

Who are the users in the Pi Network?

The project distinguishes four user types:

Pioneers: The base – 55 million active users “mining” their coins daily. They invest time rather than money.

Contributors: Pioneers who fill their Security Circles with trusted contacts. They increase network security through a dense trust web.

Ambassadors: Growth drivers who invite others. They receive a 25% bonus on their mining rate for each new active member – with unlimited potential.

Nodes: Users running the Pi software locally on their PC. They provide the infrastructure.

The mining rate has decreased over time – from 1.6 PI per hour at the start to currently 0.2 PI per hour after 10 million users. This shows the system’s inflationary nature: more users = less reward per person.

Is Pi Coin already tradable?

Yes – but with major restrictions. Since the mainnet launch, Pi Coins can theoretically be traded. In practice, however, the network is not yet connected to leading exchanges like Gate.io. Some listings on smaller platforms exist, but liquidity remains low. This also explains why the current price of $0.20 appears so volatile and speculative – it’s mainly an IOU market.

Is Pi Coin a scam?

Short: No – but with question marks.

Pi is not a classic rug pull or Ponzi scheme. No one needs to invest money, there are no mandatory payments. Entry is free, participation voluntary. This sets Pi apart from obvious scam projects.

However: the project suffers from a lack of transparency. Years of promises without clear roadmaps, missing external audits, unresolved questions about KYC and privacy – all fueling skepticism. Also, the idea circulating in the community of a “Global Consensus Value" of is more fantasy than reality.

Pi is not a scam, but also not a trustworthy project – it operates in a gray area.

Conclusion: Pi Coin in summer 2025

The Pi Network remains one of the most ambitious and controversial crypto projects. After years of waiting, an open mainnet is finally available, the IOU market functions, and visible volume exists. But core questions remain unresolved.

The current outlook is more cautious than optimistic. With a price of $0.20, declining volume, and negative technical indicators, there’s nothing pointing to an immediate rebound. Long-term, Pi could be interesting – if it survives the critical phase. For bold investors, opportunities may arise. For conservative investors, waiting remains the best strategy.

The coming months will be decisive. Either Pi makes a real step forward – or it fades into another failed experiment in the crypto scene.